The Cast Metals Federation (CMF) has welcomed key aspects of the Government’s response to its consultation on the British Industrial Competitiveness Scheme (BICS), while warning that gaps remain which risk undermining the competitiveness of the UK casting sector.
Following calls from the CMF and its members to recognise the essential role that foundries play in supporting the UK’s priority industrial sectors, the Government has extended the scope of the scheme to include iron and steel casting (SIC codes 2451 and 2452).
However, parts of the casting sector remain excluded from the scheme, leaving significant gaps in support for UK foundry capability.
CMF Chief Executive Lee Marshall said: “We are pleased that the Government has recognised the importance of casting to the UK’s industrial strategy, and that iron and steel foundries will now benefit from reduced electricity costs under BICS.
“However, it is disappointing that light metal and non-ferrous casting have not been included. Foundries do not operate in silos – they supply multiple sectors and materials, and the cost of energy affects all casting operations, not just certain types.”
Under BICS, eligible businesses will receive exemptions from key electricity policy costs, delivering an estimated reduction of around 25% in energy bills from 2027. While this represents a step forward, CMF has reiterated that high industrial electricity prices remain a fundamental challenge for UK manufacturing.
Mr Marshall added: “High energy costs continue to limit the competitiveness of UK foundries. BICS support is a step in the right direction, but a more fundamental solution is still needed.
“A scheme that supports only parts of the casting sector risks distorting the market and weakening supply chains that depend on a full range of casting capabilities.”
CMF has consistently emphasised that metal casting is a critical link between the UK’s foundational industries and its priority manufacturing sectors. Most foundries supply multiple markets, including defence, advanced manufacturing and energy, and rely on energy-intensive processes regardless of the materials they cast.
The Government has now launched a further consultation on the detailed design and delivery of the scheme.
In engaging with this process, CMF will continue to press for a more inclusive and effective approach to industrial energy costs, including the extension of support to all foundries and wider reforms to reduce electricity prices for UK industry as a whole.
Mr Marshall said: “We will continue working with Government to ensure that all UK foundries can operate on a level playing field and contribute fully to the country’s industrial ambitions.”
